We find that trends and reversals in past earnings surprises predict future stock returns. These earnings surprise sequences produce a 9.88% risk-adjusted annual return which cannot be attributed to momentum nor post-earnings announcement drift. Our empirical methodology captures the market’s beliefs regarding future returns by estimating the probability associated with different possible retur...

This paper draws on the first four waves of data of the British Household Panel Survey (BHPS) to analyse the statics and dynamics of the earnings distribution in the early nineties. Motivated by the wide range of concerns which mobility is viewed to serve, I analyse mobility under three complementary headings: (i) predictability or state dependence; (ii) movement; and (iii) welfare implications...

the purpose of this research is to investigate the relationship between earnings variabilityand earnings forecast using neural networks in companies listed on tehran stock exchange. theresearch is of the library and analytical-causal study type, and is based on panel data analysis andneural networks. in this research, financial information of 98 companies from 19 industries intehran stock excha...

The predictability of abnormal returns based on information contained in past earnings announcements is a statistically and economically significant anomaly. Neither is it illusory, nor is it an artefact of the experimental design. It may be a result of market inefficiency. Our results cannot rule out this explanation. However, we find that the magnitude of the post-earnings announcement effect...

We examine the impact of national culture on earnings. Specifically, we managers’ likelihood using accrual or real earnings management (REM) and role various attributes (accruals quality, persistence, smoothing, predictability). measure Hofstede’s six dimensions (1984, 2001, 2010). Using data from 36 countries during 1997–2018, find that managers are likely to use both accruals REM in high powe...

Designed as identifiers of accounts tracking US residents' earnings, Social Security numbers (SSNs) have become over time sensitive authenticators for private sector services. Since their abuse is a major vector of identity theft, numerous initiatives have attempted to reduce their public availability. However, recent research has shown that unavailable SSNs may still be accurately predicted fr...

Empirical studies have suggested that stock returns can be predicted by financial variables such as the dividend-price ratio. However, these studies typically ignore the high persistence of predictor variables, which can make first-order asymptotics a poor approximation in finite samples. Using a more accurate asymptotic approximation, we propose two methods to deal with the persistence problem...